STB reported a Q2 adj. EPS of NOK 1.2, some 13% below our estimates due to a negative financial return in SPP. Higher quality income came in better than expected though thanks to solid cost control and good growth and our EPS estimates are only marginally changed. The share dropped however as a weak Solvency dashed hopes of excess capital release anytime soon. The ordinary dividend looks safe though and at P/E ’21e 9x and 6.2% div.yield we still see decent upside.
15 Jul 2020
One step forward, two steps back
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One step forward, two steps back
STB reported a Q2 adj. EPS of NOK 1.2, some 13% below our estimates due to a negative financial return in SPP. Higher quality income came in better than expected though thanks to solid cost control and good growth and our EPS estimates are only marginally changed. The share dropped however as a weak Solvency dashed hopes of excess capital release anytime soon. The ordinary dividend looks safe though and at P/E ’21e 9x and 6.2% div.yield we still see decent upside.